HM Income and Customs (HMRC) collected £1 billion in extra income from investigations into underpaid landfill tax over 5 years, in line with a report from regulation agency Pinsent Masons.
Practically £281 million was amassed within the final 12 months alone.
Landfill tax is imposed on waste disposed of in landfills to advertise waste discount and recycling.
Many companies face investigations, resulting in further taxes and penalties as a result of complicated legislative regime.
HMRC’s strict interpretation of technical language describing waste supplies can inflate tax liabilities considerably, in line with the report.
Sam Wardleworth, Senior Affiliate at Pinsent Masons, stated: “Landfill tax errors is perhaps amongst the most expensive errors in the complete UK tax system. If you happen to’re disposing of ten thousand tonnes of waste, the flawed description can value nearly one million kilos in further tax and fines.
“Ensuring workers and drivers fill in varieties accurately to make sure the proper charge of tax is payable could be very tough in observe. There’s a degree of subjectivity in what constitutes an correct description of fabric and HMRC’s interpretation is strict.”
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